Seems to be some kind of Risk Manager 3.0 with lower degradation of performance…
Best and most important improvement EVER! This is the Risk Manager I have been dreaming of since 2016.
I believe this new improvement will greatly help Darwinex to bring in many good traders and institutional investors.
Maybe? I’ll never know 'cause I understand like 2% of it so I won’t be able to link any future improvement to this video.
pah-leeeese get it in English… like that should be first don’t you think??
why in the world are all the good videos done first in Spanish??
must be a large cohort of Spanish-only speakers.
doesn’t matter what anyone thinks is ideal… because it’s more about giving us what we WANT! We want MORE risk. As providers and investors. 2x risk on DARWINS is not enough.
We shall see how this works and how the execution goes.
I want LESS risk. If you want more risk, you will be disappointed by this improvement.
Newsflash: they are a Spanish broker and at least 50% of customers are Spanish.
BTW you are right.
Maybe I can agree with this too but it is another sublject, first I need a profitable portfolio.
And I want a more efficient risk manager that does not increse DD and reduces return.
From what I understand this change will be in that direction.
Please,somebody write in English main ideas so others can get it.Youtube subtitles are disaster,I cannot understand anything.
Long story short.
Actual risk manager is penalyzing darwins like LVS so they are planning flexible darwins with a VAR from 4 to 10% .
Sorry,I am not sure what you mean.Are you talking about penalizing “let the winner run”.Like FSK was penalized even when he had long open winners?
No it has nothing to do with that.
Thy think that a risk manger that is allowed to generate a darwin with a range of 4-10% var would be more efficient tha this one that is forced to normalize to 10%.
I think the goal is better darwins not to prize traders with random risk.
You mean guys with bad Rs score will be forced into low VaR regime and darwins with good Rs and stable VaR will be rewarded with more trust and higher VaR regime?
It is about target VAR of darwins not about source var of the underlying strategy.
BTW let’s wait for some Spanish speakers
I am just happy that they are still evolving the risk manager to have better darwins.
My understanding is that experienced traders can set a VaR equal to OR lower than 10% for their DARWINs.
Target VaR 4 means investor has 40 Euro really invested instead of 100 euro now. That means less DD and less profit for the investor.
That helps Darwins with high AuM not to shake the market with a single trade. It also helps hazardous traders with high DD and sometimes high profit to attract investors.
Edit - to make it clearer:
It also helps hazardous traders with high DD and sometimes high profit to attract investors because the DD of the Darwin is cut.
We are discussing about good and bad trading on many topics and this is not one of them
I suggest to newcomers to read this:
that is the former episode of the “risk manager” saga.
I don’t know whether they have criteria to allow a trader to use target VaR 4 or not. As it is written here, a DD of 50 will be cut to 20 and a DD of 20 with VaR 10 is cut to 8.
That also has an effect on the DarwinIA ranking as it is similar with the profit.
And if they better put a fixed var of 5% and we stop complications?
We all want less risk, but if you want more, you can leverage as you wish